research-article

Is Combining Contextual and Behavioral Targeting Strategies Effective in Online Advertising?

Authors:

Ling XueAuthors Info & Claims

ACM Transactions on Management Information Systems (TMIS), Volume 7, Issue 1

Article No.: 1, Pages 1 - 20

https://doi.org/10.1145/2883816

Published: 26 February 2016 Publication History

Abstract

Online targeting has been increasingly used to deliver ads to consumers. But discovering how to target the most valuable web visitors and generate a high response rate is still a challenge for advertising intermediaries and advertisers. The purpose of this study is to examine how behavioral targeting (BT) impacts users’ responses to online ads and particularly whether BT works better in combination with contextual targeting (CT). Using a large, individual-level clickstream data set of an automobile advertising campaign from an Internet advertising intermediary, this study examines the impact of BT and CT strategies on users’ click behavior. The results show that (1) targeting a user with behavioral characteristics that are closely related to ads does not necessarily increase the click through rates (CTRs); whereas, targeting a user with behavioral characteristics that are loosely related to ads leads to a higher CTR, and (2) BT and CT work better in combination. Our study contributes to online advertising design literature and provides important managerial implications for advertising intermediaries and advertisers on targeting individual users.

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Cited By

Häglund EBjörklund J(2024)AI-Driven Contextual Advertising: Toward Relevant Messaging Without Personal DataJournal of Current Issues & Research in Advertising10.1080/10641734.2024.233493945:3(301-319)Online publication date: 29-Apr-2024
https://doi.org/10.1080/10641734.2024.2334939
Wang PJiang LYang J(2023)The Early Impact of GDPR Compliance on Display Advertising: The Case of an Ad PublisherJournal of Marketing Research10.1177/0022243723117184861:1(70-91)Online publication date: 23-Jun-2023
https://doi.org/10.1177/00222437231171848
Shi CHu PFan WQiu L(2023)Competitive peer influence on knowledge contribution behaviors in online Q&A communities: a social comparison perspectiveInternet Research10.1108/INTR-07-2022-0510Online publication date: 20-Jun-2023
https://doi.org/10.1108/INTR-07-2022-0510
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Index Terms

Is Combining Contextual and Behavioral Targeting Strategies Effective in Online Advertising?
1. Information systems
  1. World Wide Web
    1. Web applications
      1. Electronic commerce
        Online shopping

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cover image ACM Transactions on Management Information Systems

ACM Transactions on Management Information Systems Volume 7, Issue 1

March 2016

61 pages

ISSN:2158-656X

EISSN:2158-6578

DOI:10.1145/2897823

Editor:
Alexander Tuzhilin
New York University, USA

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Copyright © 2016 ACM.

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Association for Computing Machinery

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Publication History

Published: 26 February 2016

Accepted: 01 December 2015

Revised: 01 October 2015

Received: 01 October 2014

Published in TMIS Volume 7, Issue 1

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Cited By

Häglund EBjörklund J(2024)AI-Driven Contextual Advertising: Toward Relevant Messaging Without Personal DataJournal of Current Issues & Research in Advertising10.1080/10641734.2024.233493945:3(301-319)Online publication date: 29-Apr-2024
https://doi.org/10.1080/10641734.2024.2334939
Wang PJiang LYang J(2023)The Early Impact of GDPR Compliance on Display Advertising: The Case of an Ad PublisherJournal of Marketing Research10.1177/0022243723117184861:1(70-91)Online publication date: 23-Jun-2023
https://doi.org/10.1177/00222437231171848
Shi CHu PFan WQiu L(2023)Competitive peer influence on knowledge contribution behaviors in online Q&A communities: a social comparison perspectiveInternet Research10.1108/INTR-07-2022-0510Online publication date: 20-Jun-2023
https://doi.org/10.1108/INTR-07-2022-0510
Wang GTan GYuan YOoi KDwivedi Y(2022)Revisiting TAM2 in behavioral targeting advertising: A deep learning-based dual-stage SEM-ANN analysisTechnological Forecasting and Social Change10.1016/j.techfore.2021.121345175(121345)Online publication date: Mar-2022
https://doi.org/10.1016/j.techfore.2021.121345
Hao CYang L(2022)Platform advertising and targeted promotionElectronic Commerce Research and Applications10.1016/j.elerap.2022.10117855:COnline publication date: 1-Sep-2022
https://dl.acm.org/doi/10.1016/j.elerap.2022.101178
Thomas TTuteja KChowdhury A(2021)Advergames Are More Persuasive Among Different Online AdvertisementsErgonomics for Improved Productivity10.1007/978-981-15-9054-2_12(105-117)Online publication date: 24-Mar-2021
https://doi.org/10.1007/978-981-15-9054-2_12
Kumar STan YWei L(2020)When to Play Your Advertisement? Optimal Insertion Policy of Behavioral AdvertisementInformation Systems Research10.1287/isre.2019.090431:2(589-606)Online publication date: 1-Jun-2020
https://dl.acm.org/doi/10.1287/isre.2019.0904
Vassio LGaretto MChiasserini CLeonardi E(2020)User Interaction with Online AdvertisementsACM Transactions on Modeling and Performance Evaluation of Computing Systems10.1145/33771445:2(1-26)Online publication date: 5-Mar-2020
https://dl.acm.org/doi/10.1145/3377144
Varnali K(2019)Online behavioral advertising: An integrative reviewJournal of Marketing Communications10.1080/13527266.2019.163066427:1(93-114)Online publication date: 17-Jun-2019
https://doi.org/10.1080/13527266.2019.1630664
Lian SCha TXu Y(2019)Enhancing geotargeting with temporal targeting, behavioral targeting and promotion for comprehensive contextual targetingDecision Support Systems10.1016/j.dss.2018.12.004117(28-37)Online publication date: Mar-2019
https://doi.org/10.1016/j.dss.2018.12.004
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